Daimler sold 2.34 million Mercedes-Benz passenger cars in 2019 for a ninth consecutive year of record sales, it said on Thursday, putting the German carmaker in pole position to retain the title of biggest-selling premium car brand.
Stuttgart-based Daimler claimed it had retained the title of best-selling luxury car brand. However, rival BMW (BMWG.DE), the brands of which include Mini and Rolls-Royce, has yet to give a breakdown of its global sales.
As a carmaking group, BMW sold 2.52 million vehicles last year to beat Daimler’s 2.46 million Mercedes-Benz and Smart vehicles over the same period.
Mercedes-Benz said it posted sales records in Germany, China and the United States thanks to strong demand for its sports utility vehicles and high-end limousines.
Daimler said Mercedes-Benz sales rose 6.2% in China, where local customers ordered the top-end Maybach Mercedes-Benz S-Class limousine at a rate of more than 700 vehicles a month.
Volkswagen’s (VOWG_p.DE) premium arm Audi (NSUG.DE) said it had sold 1.84 million cars last year, up 1.8% year on year, thanks to a 4.1% jump in Chinese sales including Hong Kong.
Audi said it sold 19,500 electric e-tron models in Europe last year while Daimler declined to provide a figure for how many electric Mercedes-Benz EQC models it delivered to customers.
Daimler AG, the global automotive company and Rolls-Royce Group plc, the global power systems company, announced that they intend to launch a public tender offer for 100 percent of the share capital of Tognum AG. The public tender offer is intended to be carried out by a 50:50 joint venture company.
The complete details are below but for a quick summary, check out the main points of the plan:
Listed on the Frankfurt Stock Exchange, Tognum AG is a premium supplier of engines, propulsion systems and components for Marine, Energy, Defence, and other industrial applications (often described as “off-highway” applications). Daimler has strong capabilities in engine technology and manufacturing expertise, and exceptional access to global markets. Rolls-Royce has complementary world leading capability in integrated power systems and services, and a well established market presence in the Marine, Energy and Defence sectors.
The proposed joint venture, comprising of Tognum and Bergen, the gas and diesel medium-speed engine business from Rolls-Royce, will offer significant advantages to Daimler, Rolls-Royce and Tognum. The markets in which the Joint Venture will operate are attractive and fast growing, especially in the developing economies. By combining the strengths and market access of these three world-class companies the Joint Venture will be able to offer a compelling portfolio of products, services and integrated solutions on a global basis, thus enabling the Joint Venture to become a world leading engine systems company and creating additional value for shareholders. The partners intend to maintain the current manufacturing sites and are confident that the growth strategy will secure jobs and lead to further opportunities. This may include investment in a new state of the art plant and facilities to enable growth and deliver productivity improvements.
Dr. Dieter Zetsche, Chairman of the Board of Management, Daimler said: “Tognum is an excellent company, and the combination with Daimler and Rolls-Royce creates a win situation for all parties. The planned combination will provide a strong platform to realize the huge market potential. It is an exciting proposition for Daimler to partner with Rolls-Royce to further invest in the Tognum business to create growth for the company and create additional value for our shareholders as well as for the customers and employees of Tognum.”
Sir John Rose, Chief Executive Rolls-Royce Group plc said: “This is a significant opportunity to harness the innovation, technology and engineering expertise of
Rolls-Royce, Daimler and Tognum. The complementary capabilities we are bringing together will provide us with a world leading proposition, and will enable us to expand the business by developing a broader portfolio of integrated power systems and services for existing and new customers.”
Daimler and Rolls-Royce will offer Tognum shareholders € 24 per share in cash representing a total consideration of approximately € 3.2 billion. This represents a premium of around 30 per cent above the XETRA closing price of Tognum shares on Friday March 4, 2011, the last undisturbed trading day before the transaction was rumoured in the markets, and a premium of around 22 per cent above the weighted average price of Tognum shares over the three months before the announcement of the transaction. Daimler holds a 28.4 per cent stake in Tognum which will be tendered into the takeover offer at the offer price.
The joint venture allows Daimler to further enhance its shareholding in Tognum. With its engineering and technology competence, Daimler will be a partner in research and development to develop modern and highly efficient engine systems and make a significant contribution to the efforts to meet ever more stringent emission standards. In addition, Tognum will also benefit from leveraging Daimler’s strong global network. Daimler will secure its business relationship with Tognum as an engine supplier and will also continue to add to the Tognum product range with its diesel engines, thus further bolstering its business relationship with Tognum.
Rolls-Royce will contribute its medium speed reciprocating engine business which trades under the Bergen brand name to operate within the new joint venture company. Bergen engines have an outstanding track record for quality and reliability. The portfolio includes diesel and gas powered reciprocating engines which address the marine propulsion and auxiliary power markets. Rolls-Royce also brings a proven capability to deliver complex integrated systems and solutions in these growing markets where customers increasingly require a total solution approach.
The benefits of complementary technologies, a common commitment to innovation, increased focus on systems solutions and through life customer support and broader market access will create considerable growth opportunities. Productivity will be enhanced by the benefits of scale, combining operational capabilities within the venture and delivering improved solutions to the benefit of both customers and shareholders. As such, the combined portfolio will be well positioned to become one of the world’s leading industry players in the Marine, Distributed Power Generation, Offshore Oil & Gas and Industrial applications markets.
Further information on the offer:
The offer will be made subject to clearance by appropriate merger control authorities and achievement of a minimum acceptance threshold of at least 50 per cent plus 1 share (including the 28.4 per cent stake in Tognum to be tendered by the Daimler subsidiary) of the currently issued share capital of Tognum. In addition, the offer will be made on and subject to the terms and conditions to be set out in the offer document.
The shareholder agreement entered into by Daimler and Rolls-Royce, as is customary, contains exit provisions allowing either party to exit the joint venture under certain circumstances, including in the event of a change of control or insolvency of the other partner. Depending on the triggering event, these provisions provide each of the parties the right to exit at cost or fair market value of the venture, subject to any required regulatory consents or approvals. In addition, under certain circumstances, Rolls-Royce could be required to acquire Daimler’s stake in the joint venture at cost subject to certain adjustments.
Mercedes-Benz posted record sales in India in the first half of 2010 and high growth rates enabled it to gain substantial market share. Sales rose by 69 percent in the first six months of the year and a total of 2,500 vehicles were delivered to customers. Mercedes-Benz saw sales climb by 83 percent in June alone.
Dr. Joachim Schmidt, Executive Vice President Sales and Marketing, Mercedes-Benz Cars: “Sales substantially exceeded our expectations in the first half of 2010, supported in particular by the success of the new E-Class. We are currently the strongest premium brand in India and we want to build on our success in the second half of the year and expand our market position. As was the case in the first six months, we are also aiming to achieve record sales for the full year 2010.” Mercedes-Benz sold a total of 3,200 units in India in 2009.
India is currently the third-largest automotive growth market in the world. “We expect India’s premium segment to grow more rapidly than the market as a whole in the coming years,” says Schmidt. “Mercedes-Benz aims to have a corresponding share of this growth. The basis for this growth is a large number of attractive products. We offer customers a broader range of products than any other premium brand. Currently we have supplemented this lineup with another fascinating vehicle: The Mercedes-Benz SLS AMG super sports car is available in India now.” In India, Mercedes-Benz offers a total of 30 models in eleven product segments.
The new E-Class was introduced to the Indian market in October 2009. Like the S-Class sedan, the E-Class sedan took the lead in its segment in the first half of 2010. Sales of the E-Class sedan jumped by 109 percent in the first six months of the year to 1,000 vehicles. Sales of the S-Class sedan grew by 25 percent during this period. The M-Class was also the top-selling car in its segment during the first half of the year, sales of the SUV increased by 30 percent. The C-Class sedan posted strong growth as well, with sales increasing by 53 percent and was the market leader in its segment in June.
Mercedes-Benz has had a presence in India since 1954. In 1995, the company became the first premium automaker to set up its own production facilities in the country. This was followed a year later by the opening of a research and development center in Bangalore. The company also maintains a procurement office in the country. In 2009, the company created the framework for future expansion by opening a new production facility for cars and commercial vehicles in Chakan/ Pune. The plant manufactures vehicles for the Indian market. The sales network is being continuously expanded and now consists of over 50 centers in 26 cities. Daimler Financial Services, the financial services division of Daimler AG, is now also preparing its entry into the Indian market.
The Supervisory Board and Board of Management of Daimler AG (stock – exchange symbol “ DAI ” ) have decided to apply for the discontinuation of the listing of its shares on the New York Stock Exchange (NYSE).
Bodo Uebber, CFO of Daimler AG, said: “Daimler continues to place great importance on having an international shareholder base. The trading center for our shares, however, clearly is Frankfurt – and that is also the case for our international investors. Furthermore, this step will enhance our overall efficiency. The American sales market and our activities in North America remain as important as ever for Daimler.”
Daimler informed the NYSE by letter today of its intention to discontinue the listing of its shares as well as the 8.50% notes due January 18, 2031 of Daimler Finance North America LLC and the related Daimler guarantee. Daimler will submit a request for delisting also to the United States Securities and Exchange Commission (SEC). After the delisting has become effective, Daimler will also apply to the SEC for deregistration of all its securities registered with the SEC and termination of its reporting obligations under the U.S. Securities Exchange Act of 1934.
The main reason for discontinuing the NYSE listing and registration with the SEC is a significant change in the behavior of international investors, who now primarily trade in Daimler shares in Germany and through electronic trading platforms. Daimler’s trading volumes in the United States on the contrary have been consistently low and , over a twelve month period, amounted to an average of well below 5% of the worldwide trading volume .
Another objective is to reduce the complexity of financial reporting as well as administrative expenses and fees. The delisting is also the final step in Daimler’s efforts to reduce its number of stock-exchange listings.
Daimler AG will apply for delisting and deregistration in the near future. Independently of the delisting and deregistration, Daimler will maintain a high degree of transparency in its financial reporting and will continue to fulfill the requirements of international investors. “We remain in direct, close and open dialogue with our American investors, and our investor relations team and I will continue to be present on a regular basis in the U.S.,” stated Mr. Uebber.
Daimler has a strong presence in North America and will continue to work to further strengthen its market share and business operations there. In 2009, the region accounted for 25 percent of the Daimler Group’s worldwide revenue and almost every tenth Daimler employee worked in North America.
Daimler reserves the right to submit the aforementioned applications at a later date or to not to submit them at all or to change its plans in other ways. Daimler and Daimler Finance North America LLC have not arranged for the listing of the aforementioned securities on another U.S. securities exchange or for the quotation of such securities in a quotation medium in the United States.
Mercedes-Benz is continuing its growth path. As in previous months, sales increased at a double-digit rate in April. Customer deliveries totaled 93,100 units (April 2009: 80,700), an increase of 15 percent. “We are very satisfied with our sales development in April,” says Dr. Joachim Schmidt, Executive Vice President Sales and Marketing, Mercedes-Benz Cars. “Our products are very popular with customers and we grew at a double-digit rate in nearly all markets. It’s a great start into the second quarter during which we plan to substantially boost sales. In line with the sales development, our incoming orders have increased significantly as well. That is particularly due to the high demand in China and the U.S. and the great success of the E and S-Class.”
The Chinese market continues to be one of the main growth drivers. At 11,300 units (April 2009: 5,600), Mercedes-Benz posted a new sales record in the country and again doubled the number of its deliveries. Within the Asia-Pacific region, the brand’s deliveries rose by 26 percent in Japan and by 36 percent in Australia. Mercedes-Benz also grew at a double-digit rate in the BRIC countries of India (plus 95 percent), Brazil (plus 77 percent), and Russia (plus 50 percent).
The positive trend of the past several months has also continued in the U.S., with sales there rising by 21 percent to 17,600 units (April 2009: 14,600). Mercedes-Benz was therefore the German premium brand with the highest sales volume in the country, enabling it to gain market share. In fact, Mercedes-Benz has been the German premium brand with the highest market share in the U.S. since the beginning of the year.
Mercedes-Benz delivered 24,200 passenger vehicles (April 2009: 23,000) to Western Europe (excluding Germany) in April, representing an increase of six percent on the same month last year. High growth rates were recorded for example in the UK (plus 12 percent), Belgium (plus 14 percent) and Austria (plus 27 percent).
Mercedes-Benz sold 21,600 units in Germany in April, thus nearly matching the level reached last year (April 2009: 22,100). Mercedes-Benz was able to buck the overall market trend and gained market share in April. Mercedes-Benz thus remains the most successful premium automaker on its home market.
Within the product portfolio, the new models of the E-Class continued to post very strong growth, with customer deliveries of the sedan rising by 52 percent to 17,200 units. That result once again put it far ahead of its competitors. The E-Class convertible, which reached showrooms on March 27, is also very popular with customers. A total of 4,700 S-Class sedans were delivered to customers in April, up seven percent on the same month last year. The C-Class is also very popular, with deliveries of the sedan up by eight percent to 19,600 units, while deliveries of the station wagon even rose by 19 percent.
A total of 9,000 (April 2009: 10,200) smart fortwo were delivered worldwide in April (minus 11 percent). The company expects sales of the smart brand to get a boost from the market launch of the new-generation smart fortwo, which will start in the third quarter of 2010.
Daimler AG (stock-exchange symbol DAI) has reported first-quarter EBIT of €1,190 million, as previously disclosed on April 19, 2010 (Q1 2009: minus €1,426 million). “This very good result for the first quarter shows that we did our homework in the crisis and are now firmly on track for success once again,” stated Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars.
The very positive earnings development is reflected by ongoing upward trends in nearly all divisions. Mercedes-Benz Cars in particular posted significantly positive earnings for the first quarter of 2010, due to increased unit sales in the E-Class and S-Class segments.
The positive development of EBIT led to net profit for the Group of €612 million, representing a considerable improvement over the prior-year result (Q1 2009: net loss of €1,286 million). Earnings per share amounted to €0.65 (Q1 2009: loss per share of €1.40).
Total unit sales up by 21% in the first quarter
In the first quarter of 2010, Daimler sold 402,700 cars and commercial vehicles worldwide, which was 21% more than in the same period of last year.
The Daimler Group’s first-quarter revenue increased significantly from €18.7 billion to €21.2 billion; adjusted for exchange-rate effects, revenue grew by 15%.
The free cash flow from the industrial business was positive and increased compared to the prior-year quarter from minus €1.1 billion to plus €0.3 billion.
At the end of the first quarter of 2010, Daimler employed 254,779 people worldwide (Q1 2009: 263,819). Of that total, 161,449 people were employed in Germany (Q1 2009: 164,983).
Details of the divisions in the first quarter
Mercedes-Benz Cars achieved a very positive business development in the first quarter of 2010. Due in particular to strong growth in the E-Class and S-Class segments, unit sales increased compared to the first quarter of last year by 20% to 277,100 vehicles (Q1 2009: 231,200). This year, therefore, the car division has continued its positive development of the fourth quarter of 2009. First-quarter revenue rose by 28% to €11.6 billion.
The division’s EBIT amounted to €806 million (Q1 2009: minus €1,123 million). The main factors contributing to this distinct earnings improvement were the significant increase in unit sales, especially in the full-size and luxury segments, the related improvement in the product mix and improved pricing. The division increased its unit sales above all in the United States and China. Currency translation had a negative impact on earnings, but was partially offset by efficiency gains and cost reductions.
Daimler Trucks sold 70,600 vehicles in the first quarter of 2010 (Q1 2009: 65,400). Lower unit sales in Germany, the Middle East and Japan were more than offset by higher volumes in Latin America (+79%) and Southeast Asia (+48%). Revenue of €4.9 billion was close to the level of the prior-year period.
The division’s EBIT of €130 million was positive again (Q1 2009: minus €142 million). This earnings improvement is primarily due to the good business development in Latin America. Other positive effects resulted from the measures taken to reduce costs, especially from the repositioning of the subsidiaries Daimler Trucks North America and Mitsubishi Fuso Truck and Bus Corporation. Implementing these programs impacted EBIT by minus €17 million in the first quarter of this year (Q1 2009: minus €45 million).
Mercedes-Benz Vans increased its unit sales to 46,700 vehicles following a slight market recovery (Q1 2009: 28,800). Revenue of €1.7 billion was also higher than in the prior-year quarter (€1.3 billion).
The division achieved EBIT of €64 million (Q1 2009: minus €91 million). The positive development of earnings was mainly the result of higher unit sales compared to the prior-year quarter, especially in Western Europe. Charges from currency effects were largely offset by efficiency improvements and cost savings.
Daimler Buses significantly increased its worldwide unit sales to 8,400 buses and bus chassis (Q1 2009: 6,800). Revenue of €1,011 million was higher than in the first quarter of last year (€904 million).
The division posted EBIT of €41 million; as expected, this was lower than the high level of earnings in the prior-year quarter (€65 million). The development in earnings is primarily due to lower unit sales in Western Europe, which could not be fully offset by the positive business development in Latin America.
Daimler Financial Services’ worldwide contract volume amounted to €59.9 billion at the end of the first quarter of 2010, representing a year-on-year decrease of 3%. Compared with the end of the year 2009, contract volume increased by 3%; adjusted for exchange-rate effects, the portfolio decreased by 1% compared to year-end. New business increased compared to the first quarter of last year by 6% to
€6.2 billion; adjusted for exchange-rate effects, there was an increase of 5%.
The division achieved EBIT of €119 million (Q1 2009: minus €167 million). The improvement in earnings was mainly caused by lower provisions for risks and higher interest margins. On the other hand, charges were recognized in particular from the valuation of non-automotive assets held for sale, which are subject to leasing agreements (minus €46 million).
The reconciliation of the divisions’ EBIT to Group EBIT primarily reflects Daimler’s proportionate share in the results of its equity-method investment in EADS, as well as further gains or losses at corporate level.
In the first quarter of 2010, Daimler’s proportionate share of the net result of EADS amounted to a loss of €269 million (Q1 2009: gain of €83 million). The substantial deterioration is primarily the result of additional provisions recognized by EADS in its 2009 consolidated financial statements relating to the A400M military transport aircraft. On the other hand, the sale of the 5.3% equity interest in Tata Motors led to a pre-tax gain of €265 million, which is reflected in the reconciliation to Group EBIT.
Outlook
Based on the divisions’ planning, Daimler expects total unit sales to increase significantly in 2010 (2009: 1.6 million vehicles).
Following a distinct decline in 2009, Daimler assumes that Group revenue will increase again in 2010, but will remain significantly below the level of 2008. All automotive divisions should contribute to this year’s growth.
Daimler expects to achieve Group EBIT from the ongoing business of more than €4 billion in 2010. The key factors for this expectation are the ongoing market revival, the improving economic environment and the market success of the Group’s products.
The division’s expectations for EBIT from the ongoing business in full-year 2010 are as follows:
Mercedes-Benz Cars will profit this year from the full availability of the new E-Class models. Following the very successful market launches in 2009 of the E-Class sedan, coupe and station wagon, the new E-Class convertible was launched in the first quarter of 2010. Unit sales will also be boosted by the new super sports car Mercedes-Benz SLS AMG, and as of autumn 2010 by the new generations of the
R-Class and the CL-Class. Furthermore, the division is continually launching additional fuel-efficient and environmentally friendly versions of existing models. Starting in the third quarter of 2010, new and particularly efficient six- and eight-cylinder gasoline engines will become available. The already extensive portfolio of BlueEFFICIENCY models will be expanded to 85 model versions by the end of 2010. For the smart brand, Daimler anticipates an increase in demand following the launch of a new generation of the smart fortwo in the third quarter of 2010.
On the basis of an attractive and competitive range of vehicles, Mercedes-Benz Cars assumes it will be able to strengthen its market position in 2010 even with a continuation of difficult conditions, and that it will grow at about double the rate of the global car market. From today’s perspective, global demand for cars should increase this year by between 3 and 4 percent.
The division’s EBIT should be facilitated on the one hand by higher volumes and on the other hand by improved profit margins. The projected EBIT range is primarily dependent on market developments, exchange-rate volatilities and the macroeconomic situation. The division will continue to invest substantial amounts in the development and production of new drive technologies and innovative safety systems in order to improve its competitive position in this difficult market environment.
Daimler Trucks anticipates a recovery of unit sales this year, starting from the low level of 2009. The division expects growth impetus initially from some of the Latin American markets and – starting from a very low level – also from the NAFTA region. In Europe, however, a slight revival of demand is anticipated in the second half of 2010 at the earliest.
Against the backdrop of rising customer demand in the van sector and the stabilizing market situation, Mercedes-Benz Vans expects a significant increase in unit sales compared to the prior year.
Daimler Buses assumes that it will increase its unit sales in 2010, mainly due to strong demand in Latin American markets.
Daimler Financial Services anticipates stable development of its worldwide contract volume in the automotive business. The division assumes that credit-risk costs will decrease in full-year 2010 and that further efficiency improvements will be achieved.
As a result of the upturn in demand, Daimler assumes that the size of its worldwide workforce will remain constant or increase slightly this year compared to the end of 2009.
Daimler AG (stock-exchange abbreviation DAI) today releases its preliminary figures for the first quarter of 2010. Group revenues amount to 21.2 billion €, while Group Earnings before Interest and Taxes (EBIT) including special reporting items amount to 1.2 (2009: -1.4) billion €.
The EBIT in the first quarter was supported by very solid results at Mercedes-Benz Cars in consequence of strong sales, model mix and pricing as well as a favourable overall cost position during the first quarter.
The divisions’ preliminary EBITs are:
Negative special reporting items are included in the division results in Daimler Trucks and Daimler Financial Services. The gain from the sale of the stake in Tata and the negative impact from EADS are at similar levels.
The divisions’ revenues are:
EBIT Outlook 2010
Mercedes-Benz Cars expects an EBIT of 2,5 to 3 billion € from ongoing business. Daimler Trucks anticipates an EBIT of 500 to 700 million € from ongoing business.
These Q1 figures are preliminary and not reviewed by the auditor. Daimler will publish final numbers and the group guidance as well as further details of its quarterly financial statements on April 27, 2010.
Daimler AG and the consortium of private and public-sector investors have confirmed to continue the agreement reached on February 9, 2007 concerning the equity interests and voting rights in the European Aeronautic Defence and Space Company (EADS). At Germany’s Federal Chancellery on March 16, 2010, Daimler and the investors stated their willingness to continue the existing agreement without any changes.
As a result, Daimler continues to hold 22.5% of the voting rights in EADS while its economic interest is still 15%. Thus, the existing balance of voting rights between German and French shareholders remains unchanged.
“The confirmation of the voting-rights structure gives EADS the stability to consistently pursue its strategic goals. Ten years after EADS was founded, Daimler still plays a crucial role in the continuation of this success story of European integration,” stated Bodo Uebber, Member of the Board of Management of Daimler AG and Chairman of the Supervisory Board of EADS N.V.
The ownership structure was worked out under the coordination of the Federal Chancellery and was agreed upon on February 9, 2007. At that time, Daimler placed its entire 22.5% equity interest in EADS into a company in which the investor consortium holds a one-third interest through a special purpose entity. This is equivalent to the investor consortium holding a 7.5% equity interest in EADS.
The agreement includes an option for Daimler to end this structure as of July 1, 2010. Following consultation with the investor consortium, Daimler will not make use of this option. The existing ownership structure and other arrangements remain unaffected.
The investor consortium consists of 15 investors: seven in the private sector and eight in the public sector. The private-sector investors hold 60% of the special-purpose vehicle and the public-sector investors hold 40%.
The private-sector investors are Allianz, Commerzbank, Credit Suisse, Deutsche Bank and Goldman Sachs, each of which holds 10% of the special-purpose vehicle, as well as Morgan Stanley and Sal. Oppenheim, each of which holds 5%.
On the side of the public sector, the KfW banking group holds 13%, HGV Hamburger Gesellschaft für Vermögens- und Beteiligungsverwaltung (State of Hamburg) holds 10%, Hannoversche Beteiligungsgesellschaft (State of Lower Saxony) holds 5%, Bayerische Landesbodenkreditanstalt, Anstalt der Bayerischen Landesbank holds 3.5%, LfA Förderbank Bayern holds 1.5%, Landesbank Baden-Württemberg and Landeskreditbank Baden-Württemberg – Förderbank (L-Bank) each holds 2.5%, and Bremer Investitions-Gesellschaft (State of Bremen) holds 2%.
Daimler today sold all of its 5.34% of the ordinary shares of Indian automotive company Tata Motors to various groups of investors through the capital market. Tata Motors’ share price has risen significantly, especially last year, so Daimler will receive a substantial cash inflow of approximately €300 million from the sale of its shares. The transaction will have a positive effect on Daimler’s EBIT of approximately €265 million and will be accounted for in the first quarter of 2010.
Daimler is today in an excellent position to capitalize on the growth potential of the Indian passenger and commercial vehicle markets and continues to intensify its own activities there. An equity participation of Daimler in Tata is therefore no longer necessary. This has been done in full consultation with Tata. Relations between the two companies are excellent and will not be adversely affected by this sale.
Significant growth potential of Indian market
Despite the global financial crisis, the Indian economy is clearly booming, accompanied by dynamic social developments and a corresponding need to catch up for the country’s automotive industry. Daimler is participating in these growth opportunities by strengthening its own activities in both, the car and commercial vehicle sectors.
Mercedes-Benz Cars
Mercedes-Benz is firmly established in India. The wholly owned subsidiary Mercedes-Benz India has been producing Mercedes-Benz cars and commercial vehicles in Pune since 1995. In February 2009, a new plant was opened in Pune for Mercedes-Benz E-Class and S-Class models. Meanwhile, the brand is represented with showrooms and service centers in 25 cities.
The brand with the star started successfully into 2010 in India: In the first two months, Mercedes-Benz almost doubled its sales to a total of 800 vehicles. Additional positive impetus is expected this year from the launch of the new E-Class. In 2010, Mercedes-Benz intends to gain market share and to grow at a double-digit rate. A total of more than 3,200 Mercedes-Benz cars were delivered to customers in India last year.
Daimler Trucks
Daimler Trucks sees India as one of the key markets of the future, because particularly strong growth in demand for commercial vehicles is expected in the BRIC countries (Brazil, Russia, India and China). Daimler India Commercial Vehicles Ltd. (DICV) took over the marketing of Fuso branded commercial vehicles in India at the beginning of 2010. The first Fuso vehicle was sold to an Indian customer in January 2010.
For Daimler Trucks, India is not only a fast-growing market, but also the key to a completely new generation of products. In 2009, Daimler Trucks founded its own production company, Daimler India Commercial Vehicles Ltd. (DICV), which is building a new plant in Chennai in the southeast of India. Starting in 2012, the new plant will initially produce light, medium and heavy-duty commercial vehicles for the Indian volume market under a new brand name. The production of trucks for export to other emerging markets will follow at a later date.
In addition to its car and commercial vehicle activities, Daimler also established its biggest research and development center outside Germany in Bangalore in 1996.
The Supervisory Boardof Daimler AG has nominated Dr. Paul Achleitner as a candidate for membership of the Supervisory Boardrepresenting the shareholders. Achleitner will be available for election at Daimler’s Annual Meeting to be held in Berlin on April 14, 2010. Arnaud Lagardère, a member of the Supervisory Board since 2005, has decided not to stand for reelection.
Dr. Paul Achleitner (born in 1956) has been Member of the Board of Management for Finance of Allianz SE since 2000. Before that, he was a strategic business consultant at Bain & Co. and held various positions at Goldman Sachs in the Mergers & Acquisitions and Investment Banking departments. He became head of Goldman Sachs Germany in 1994.
Following a final verdict reached on November 17, 2009 by the higher regional court in Frankfurt am Main, Daimler AG (stock-exchange abbreviation DAI) will increase the settlement and compensation to be made to the former AEG shareholders.
The domination and profit and loss transfer agreement between the former Daimler-Benz AG and AEG AG from the year 1988 specified an exchange ratio of 5 AEG shares for one old Daimler-Benz share. In its verdict of November 17, 2009, the court specified an appropriate ratio of 2.9 AEG shares for one old Daimler-Benz share.
The compensation for foregone AEG dividends foreseen in the domination and profit and loss transfer agreement will increase accordingly. Instead of compensation of 20 percent of the Daimler dividend per old AEG share, the higher regional court has determined that 34.5 percent of the Daimler dividend is appropriate.
From today’s perspective, the court’s verdict will result in a maximum obligation for Daimler to supply 4.3 million Daimler shares and a maximum amount of 150 million euros in cash for dividends and compensation payments. The actual amount will depend, however, upon how many claims are made by eligible former AEG shareholders. Daimler has recognized provisions in its balance sheet to satisfy the claims, but the provisions are now being reviewed once again for the year-end financial statements.
Daimler intends to use treasury shares to meet these obligations.
From the share buyback program carried out in 2008, Daimler currently holds 37.1 million own shares, which were originally acquired for the purpose of redemption without reducing the share capital and possibly also to serve the stock option plan.
Daimler AG is reporting that in the month of June 2009, sales at their Mercedes-Benz Cars division dropped to 111,300 new units, a decrease of 6.7 percent when compared to last year’s June figure of 119,300 new units. As a result, worldwide sales of the Mercedes-Benz, Maybach and smart brands now total 544,400 new units through the first six months of the year, a decrease over last year’s six-month YTD total of 18.5 percent.
Individually, sales at Mercedes-Benz dropped 5.4 percent to 100,300 units in June – this compared to 106,000 units last year. At smart, the brand noted a more substantial decline, with sales of the compact fortwo totaling 11,000 new units – down 17.1 percent when compared to the prior year.
Daimler AG is reporting today that worldwide sales at its Mercedes-Benz Cars divisions dropped 12.4 percent in May 2009 to 97,300 new units, bringing total sales of the Mercedes-Benz, Maybach and smart brands to 433,100 units through the first five months of the year (a decrease of 21.1 percent). Individually, sales at Mercedes-Benz were down 12.1 percent on the month (86,300 units), while smart noted a slightly larger decline, with sales trailing 14.9 percent when compared to May 2008 (11,000 units). As a result of these figures, year-to-date sales at Mercedes-Benz are off 22.3 percent (383,000 units), while smart is down 9.9 percent (50,100 units) compared to 2008’s five-month ytd total.
It’s interesting to note: despite the current economic climate, Mercedes-Benz Cars enjoyed a gain in its home market of Germany, where the group noted a sales increase of 12.2 percent (28,800 new units). Of these, 25,600 units were of the Mercedes-Benz variety, bringing the Mercedes-Benz brand’s sales growth to 11 percent. The Asia/Pacific region also benefited from a sales increase thanks to strong sales in China, with the area as a whole increasing sales 7.8 percent to 12,900 new units.
To read more about worldwide sales at Mercedes-Benz Cars for the month of May 2009, keep reading for the official press release